Question: The government of Canada has taken a move to decrease income tax for consumers and firms. Using the AS-AD model show the impact of this

The government of Canada has taken a move to decrease income tax for consumers and firms. Using the AS-AD model show the impact of this policy on the short-run. How will the economy adjust itself in the long-run? Explain your answer in detail using the AD-AS model and provide appropriate graphs to support your explanation for short run and long run.

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